The meaning of cash flow in financial accounting refers to the inflow and outflow of funds in a specific economic unit in order to achieve a specific purpose in economic activities within a specific time. In accounting, besides measuring cash flow, it is also necessary to make a reasonable estimate of future cash flow. The basic concept of cash flow is the cash that an enterprise can immediately withdraw and use in a certain period of time. Business operators must really control cash flow. If the cash flow is insufficient, the enterprise may soon be short of funds and close down.
Capital chain refers to the basic circulating capital chain needed to maintain the normal production and operation of enterprises. The cycle of cash-assets-cash (value-added) is the process of enterprise management. If an enterprise wants to maintain its operation, it must maintain the benign and continuous operation of this cycle.